Assuming that the Cavalry are only spending 1M on their players (my guess is they are spending more) - if all 24 players were paid equally they would be earning 41,666 a piece. We know that isn't the case, and I am sure that the the local U21 players are earning much closer to 20,000. That said, nothing is stopping Atco from 'hiring' these players in any capacity. I highly doubt he league has a sophisticated auditing system yet, and I'd imagine that league revenue ( or lack there of) keeps the teams responsible for the most part.
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